Stock prices fall sharply in Asia

Businessmen stand in front of an electronic board displaying share prices as they wait to cross a street in Tokyo April 12, 2011. On May 23, 2011, Japan's Nikkei average slid more than 1.5 percent, part of a wave of falling stock prices across Asia.

Asian markets were sharply lower Monday amid signs of U.S. economic sluggishness and escalating worries about Europe's debt crisis after Italy and Greece were slapped with credit downgrades.

Oil prices fell below $99 a barrel as a stronger U.S. dollar made commodities more expensive for investors with other currencies.

Signs of a worldwide slowdown in economic growth, manifested in slumping markets and rising inflation rates, are also cooling investor sentiment, according to Linus Yip, a strategist at First Shanghai Securities in Hong Kong.

Stock prices of Japanese auto maker Honda Motor Corp. were down 1.6 percent as the company announced its workers would take 14 days off this summer because of production interruptions caused by parts shortages. The work days will be made up later in the year.

Operations at Honda, like scores of other Japanese manufactures, have been severely hindered after an earthquake and tsunami on March 11 struck Japan's industrial northeast. The region, largely wiped out, was home to hundreds of companies that manufacture parts for the country's powerhouse manufacturing industry.

In Europe, Standard & Poors cut its ratings outlook for Italy's debt from stable to negative Saturday, citing the country's poor growth prospects and concerns about the government's ability to reduce public borrowing. But with its rating still A+, Italy remains in far better shape than Greece.

Credit ratings agency Fitch cut Greece's long-term credit rating further into junk status on Friday, saying the indebted country faces challenges changing its economy to reduce debt. Investors remain concerned that Greece will have to stretch out its debt repayments or pay creditors less than what they're owed. Europe's banks, especially those in Greece, hold lots of Greek bonds, and a restructuring could hurt them.

In New York on Friday, stocks closed broadly lower for a third straight week on signs that U.S. consumer demand may be weakening.

Retailers Gap Inc. and Aeropostale Inc. each lost more than 14 percent Friday after cutting their profit forecasts for the year, in part because of higher costs for raw materials and sluggish sales. That was a worrying sign for investors who had counted shoppers to lead a recovery in spending.